Bankruptcy

[onemorerose]

Hi, I’ve declared bankruptcy and expect to be released in the coming year. Does anyone have any knowledge or experience as to what would happen if my income now increased by £600 per month? Thanks

Are you currently making payments from your earnings?

Hi Helen, I’m not currently making any payments

If it increases before you’re discharged from bankruptcy you have a duty to tell the Official Receiver that it has. You may be asked to pay a portion of it as an income payments order/agreement which will last three years, though can be varied if your income reduces. It won’t all be taken away though, just a portion of it after all your expenses are calculated (Google the household expenditure survey for details and make sure all expenses like dentist, haircuts, UK based holiday are accounted for and split across the year).

If it comes after you’re discharged they can’t claim a thing. Discharge is effectively wiping the slate clean.

Feeling like I should hold on from looking for a new job with better pay until I’m discharged then. Thanks

When were you made bankrupt? You might be discharged sooner than you think. Also do the maths on the essential expenditure - you might not need to pay anything.

Feel free to PM if you want to chat about it in slightly more detail